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Old 07-23-2006, 04:01 PM   #41 (permalink)
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Re: Newbie really needs your input!

Let me tell you my experience with ETS. I was approched by ETS when I was doing some inquires about opening my new tanning salon 2 years ago. They did a demographic study for me by calling all the other salons in and around my town. Their study included population breakdowns by age groups and medium income in a surrounding 6 mile radius. I determined, after looking at the numbers, that my area was over saturated. Even then, the salesman kept tying to sell me their equipment. He was massageing the numbers and giving me unreasonable projections. Be careful with any salesman, not just ETS. I did, after much more thought and investigation, open my new tanning salon. I have a salon which is located on a college campus and this business is 95% of my income. The ETS demographic study did not take this population into affect and it is a good reason that I am doing quite well, thank you. Shop around and I'm sure you'll find better equipment for $72,000.
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Old 07-23-2006, 04:37 PM   #42 (permalink)
 
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Re: Newbie really needs your input!

Have you met Cutester99?
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Old 07-23-2006, 05:22 PM   #43 (permalink)
 
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Re: Newbie really needs your input!

My name is oddly missing from that list.
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Old 07-23-2006, 07:27 PM   #44 (permalink)
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Re: Newbie really needs your input!

Good extra background Tan Me Baby -- it helps when people include those kinds of details in their posts.

A few thoughts:

1. Doing an on-line search and seeing who comes up first/most often ONLY tells you who pays extra to be higher on a search engine -- not necessarily ANYTHING about the quality of a company. That's a general statement -- not necessarily specific to Mastertanning only.

2. It is a fair bet that most salespeople are in the business to SELL. They will offer advice -- and some is very good and in YOUR best interest and some is suspect and in THEIR best interest. Hard to tell which is which unless you do a LOT of homework on your own so you can better sift the brilliant from the b.s.

3. Tell us more what "demographics" told you of the "need" for a tanning salon here? Because most often people look at stuff like White, females between 18-44, of a certain income --- but neglect to look at the SATURATION that already exists in an area in terms of how many salons/beds already exist in the same market. In the maturity cycle of tanning today, that is actually more critical.

4. In terms of "all I have to do is secure the location, order the beds and off I go...." -- but wanting to run it largely absentee --- do you have any experience in retail? Working or owning? Because most/many owners find the EASIEST part of owning a salon is before the doors EVERY OPEN FOR BUSINESS!!

After that, it is the constant balance of hiring, training, monitoring, firing, more hiring, more training, more monitoring, etc. Oh - and did I mention scheduling and keeping the balance between having too many (and them unhappy with their hours) or too few (and you "stuck" when they call off or don't show!).

There are the supplies -- ordering, training employees how to sell (yes -- you better be a VERY good sales trainer yourself!), and monitoring for "shrinkage" (by customers & employees both!).

Of course - -managing the bills. The utilities, advertising, rent, leases, loans, payroll, insurance, accountants/attorneys, taxes and so much more. Not bad in April & May when the money is FLOWING but a little nerve-wracking in October when it is bleeding like a sieve.

Oh -- advertising -- that's right. Don't forget being your own expert marketer as you decide what venues to use, how often, what times/year, what offers, etc. To say nothing of of all the "personal contacts" you should be making in the community to get the word out - networking with every other business owner you can find, neighbors, the babysitters, etc

VERY FEW - if any - first time salon owners going in today find they can open it as largely "absentee", where "family comes first" and have a prayer of making money the first few years. NOBODY will put more heart and soul into making YOUR business work than you. If you know -- going in -- that you want to just be an "overseer" -- starting one from scratch is not a good choice. If you REALLY want to do tanning -- you would be better off taking over an existing salon that is successful with an owner ready to get out. No guarantees, but probably a better match for you given your priorities.

But my first point remains -- is there really a NEED, or just the "right type of demographics" in the area? Saturation, or the lack thereof, is CRITICAL!
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Old 07-23-2006, 08:06 PM   #45 (permalink)
 
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Re: Newbie really needs your input!

Wow Sunsally, you are such a help......let me tell you a little more about the demographics:

I will just give you the 0 to 3 mile radius and you can let me know if you want more:

Average household income is about $97,000, the population in this radius is about 10,000, but is the fastest growing area in our town right now.

It is 90% white 49male/51female.

38% of females in area are 15-44
38% of males in area are 15-44

There are 9 beds in this 0-3 mile radius (which is one tanning salon) Let me say it is not up to the standards that I would expect for this area.

I also want to point out that my mother currently operates a business in this area. She use to be located by the above 9 bed tanning salon at which time she had a very decent living in sales. She has recently moved just less than 1 mile to this new place (in same bldg I am looking at) and has already made in 6 months what she made the entire last year because of her location.

A few other things that might be helpful for you to know is that in the entire 0 to 7 mile radius there are a total of 61 beds in a population of $60,000 people.

Oh, and I cannot tell you the number of people that come into my moms shop who say they are getting ready to go tan and when she asks where they tan....( they name the place just down the road by her old location) and say that they really think they need one in this new area less than 1 mile away. My mom alone could send me an unbelievable amount of business just becuase of her loyal customers who have now become her friends.

I am really interested in any more input you have on this, thanks. I will also be happy to answer any more questions you may have.
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Old 07-23-2006, 09:04 PM   #46 (permalink)
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Re: Newbie really needs your input!

More thoughts --

10,000 population now -- on average, 10% of the population are tanners which gives you 1,000 tanners. On average, the average client spends $75/year, which gives you $75,000 total projected gross revenue (on average!). Not enough to cover costs, let alone make a profit.

Growing -- that's good. Growing with lots of retail or housing? Because if YOU open a tanning salon in this area with great need, you can be CERTAIN someone else will do the EXACT same thing a few months down the road behind you! Are there going to be plenty of retail spots for them to consider, or will you and this existing salon have most of the "prime" territory taken?

$97,000/yearly income. We tend to think -- the more money, the better. But not always, and sometimes, the exact opposite! Higher incomes tend to have more education and oftentimes -- much more attentive to the RELENTLESS 'Sunscare" that has taken place, and continues to take place, over the past several years. They are also more likely to be doctors (or their wives) who are the most vocal re. anti-tanning. And/or more of the population who has turned away from the sun and turned instead toward botox, dermabrasion, floppy hats and sunscreen as closer to Godliness than clean underwear!

That said - if you are going to try to capture the "high end" market, better make it a "high end" spa/salon. Your current proposed mix, and manufacturer, doesn't fit that.

Saturation - 1 for every 1000 people (about). OR -- 1 for every 100 tanners (approximate). You dropping in 7 beds (or so) would drop it to closer to one for every 500 or every 50 tanners. In an expanding market -- yes. But with the threat of MORE competition after you too as well...

Do this -- spend two different days parked out side of the current salon and watch it ALL DAY LONG (take shifts with a friend/family member if you have to). Count EXACTLY how many people go in to tan. Two different days would be best. It would be better in April, but can still help to give a "guestimate" of how he is doing now in terms of having captured the market share. Wouldn't be a bad idea to also do that at the next closest "competition" to your proposed location.

Also -- where did you get your bed counts? Does this include any hair salons, nail salons, video places, gyms etc that might have a bed or two in the back? Make sure you count them too!

I'm not jumping on the bandwagon by any means, but I'm keeping an open mind (for now) as you help us get more informed to be more helpful!
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Old 07-23-2006, 09:07 PM   #47 (permalink)
 
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Re: Newbie really needs your input!

$97,000/yearly income? Send me some job applications plese.
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Old 07-23-2006, 09:17 PM   #48 (permalink)
 
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Re: Newbie really needs your input!

Wow, so funny you say that average tanner spends $75 a year.....the demo I received says average tanner spends $400 a year....I knew that was a joke when I saw it. Area is growing a lot with housing and with that said, is now growing a lot with retail.....in fact we have a new strip mall area that is awesome, but a major dermatology group is moving in.....not somewhere I would want to put a tanning salon.....other than that though, there aren't any other places around really right now. There are plans that there will be more, but who knows.

My bed counts came from the demographic and no, they don't include anything but actual tanning salons.

I do have to say that when I went into the other tanning salon, just to kinda scope things out.....I was greeted by a 10 year old who obviously couldn't answer my questions....and upon calling her mother there in the side room, she said just a minute and finally threw down the nintendo controller to come help......I was about to die......this is the manager of the salon mind you......should have named that place Mario Tan, Nintendo Tan, Sega Tan, I dunno....quite funny though.
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Old 07-23-2006, 09:35 PM   #49 (permalink)
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Re: Newbie really needs your input!

Tan me baby listen to Sunsally, Parrot Head, Dcjp, Bill they have a lot of experince and know what they are talking about.
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Old 07-23-2006, 11:07 PM   #50 (permalink)
 
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Re: Newbie really needs your input!

Quote:
Originally Posted by Neon Beach
$97,000/yearly income? Send me some job applications plese.

I thought you were a succesfull salon owner?
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